Chevron has announced plans to invest over $7 billion through its joint ventures in Venezuela to boost oil production to around 600,000 barrels per day within the next five years. The U.S. oil giant revealed that its Petroindependencia joint venture will be expanding to include two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s abundant resources and its competitive investment prospects within the company’s portfolio. This expansion by Chevron is independent of a recent deal involving a significant portion of Venezuela’s oil reserves brokered by U.S. President Donald Trump, which saw the American government acquiring an equity stake in a private oil company operating in the country.
According to White House spokesperson Anna Kelly, oil from Chevron’s venture could reach U.S. reserves by November. Venezuela, known for having the world’s largest oil reserves, currently produces approximately 1.25 million barrels per day, a significant decline from its peak production of over three million barrels per day two decades ago due to mismanagement and underinvestment by the state-run oil firm PDVSA.
Chevron’s new agreements in Venezuela offer improved fiscal, commercial, and legal terms to safeguard long-term investments, with expected production costs below $20 per barrel. The company highlighted the strong infrastructure of its joint venture and emphasized leveraging existing facilities and pipeline networks for development in the new areas.
Notably, Chevron executives, including Wirth, recently met with interim Venezuelan President Delcy Rodriguez. While Chevron continues its expansion, other companies, such as ENI, KEO Capital, and Primavera, are also set to sign energy agreements in Venezuela under revised terms as part of a comprehensive oil reform approved earlier this year.
Following the U.S.-backed removal of former Venezuelan President Nicolás Maduro and a subsequent reconstruction plan for the country’s energy sector, Chevron’s commitment to Venezuela contrasts with other oil majors like ExxonMobil and ConocoPhillips, which exited the country in 2007 following nationalization of their assets.
Chevron’s long-standing presence in Venezuela, dating back to 1923, includes joint ventures operating in the Orinoco Belt and Zulia state. The company’s expansion efforts align with the evolving energy landscape in the region, with the potential emergence of a major player resulting from the U.S. stake in North American Blue Energy Partners’ oilfield development project.